The Japanese yen rose in Asian trade on Thursday against a basket of major rivals, recovering from a two-week trough against the dollar and on track for the first profit in four days as inflationary pressures mounted in Japan.

The yen is boosted by a stall in US 10-year treasury yields before important US producer prices and unemployment claims data today.

The Price

The USD/JPY fell 0.2% today to 154.12 yen per dollar, with a session-high at 154.67.

The yen lost 1.3% against the dollar on Wednesday, the third loss in a row, and the heftiest in 2025, plumbing a two-week trough at 154.870 yen as US treasury yields surged following hot US inflation data.

Inflationary Pressures

Earlier Tokyo data showed producer prices rose 4.2% y/y in January, the best pace since May 2023, passing estimates of a 4% rise.

It’s an indication of what consumer prices will likely show for February, as inflationary pressures increase on policymakers in Japan.

Japanese Rates

Following the data, the odds of a Bank of Japan interest rate hike in March rose from 70% to 75%.

US Treasury Yields

US 10-year treasury yields fell 0.5% on Thursday away from a three-week high at 4.66%, on track for the first loss in six sessions, in turn hurting the greenback’s standing.

It comes ahead of major US data on unemployment claims and producer prices, which would provide fresh pricing for the odds of a Fed rate cut in March.

According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in March stood at just 2.5%.

Most cryptocurrencies gained ground on Wednesday as investors attempt to diversify their assets, even amid a tepid risk appetite. 

Earlier government data showed US consumer prices rose 0.5% m/m in January, and 3% on a yearly basis, striding beyond estimates.

During the second half of Fed Chair Jerome Powell’s Congressional Testimony today, he said that President Donald Trump’s calls for interest rate cuts won’t change the Fed’s decisions on interest rates.

Powell said that Congress should be confident that the Fed will continue to operate based on developments in the US economy. 

He commented on inflation data released today by saying that the Fed aims at maintaining restrictive policies for the time being to control demand and inflation, as the January inflation data indicate the Fed hasn’t yet reached its target. 

Ethereum

On trading, ethereum rose 3.3% on Coinmarketcap as of 20:46 GMT to $2675. 

Ripple

Ripple rose 1.7% on Coinmarketcap as of 20:46 GMT to $2.45.

Oil prices fell on Wednesday after OPEC’s global demand forecast report, in addition to data that showed US crude stocks rose for the third straight week. 

At its monthly report, OPEC expected global oil demand to grow by 1.45 million bpd in 2025, and by 1.43 million bpd next year.

The Energy Information Administration reported a buildup of 4.1 million barrels in US crude stocks last week to a total of 427.9 million barrels, while analysts expected a rise of 2.4 million barrels.

Gasoline stocks rose 3 million barrels to 248.1 million barrels, while distillate stocks rose 0.1 million barrels to 118.6 million barrels. 

The EIA also showed local oil demand fell by 1.45 million bpd to 19.6 million bpd. 

On trading, Brent April futures fell 2.4%, or $1.82 to $75.18 a barrel.

US crude futures due in March fell 2.7%, or $1.95 to $71.37 a barrel.

During the second half of Fed Chair Jerome Powell’s Congressional testimony today, he said that President Donald Trump’s calls for interest rate cuts won’t change the Fed’s decisions on interest rates.

Powell said that Congress should be confident that the Fed will continue to operate based on developments in the US economy. 

He commented on inflation data released today by saying that the Fed aims at maintaining restrictive policies for the time being to control demand and inflation, as the January inflation data indicate the Fed hasn’t yet reached its target. 

Powell’s remarks come after Trump called for aggressive rate cuts to boost growth in combination with his new tariffs, before the release of the latest inflation data for January, which showed consumer prices rose way past expectations.